16/01/2025
To protect your hard-earned money always exercise DUE DELIGENCE before acquiring any property and always hire a LICENSED GEODETIC ENGINEER to help you determine the exact boundaries of the property you want to acquire.
There are five (5) simple steps to do the due diligence, but before you proceed, please inform the seller that you will be conducting the said due diligence and ask for his/her permission. Both of you should be on the same page. If the seller forbids you or has a violent, negative reaction towards the conduct of a due diligence, then, it would be prudent to cancel or not move forward with the transaction.
If seller is okay, here are the steps:
1. Request for a photocopy/digital copy of the Title, Tax Declaration and Updated Real Property Tax Official Receipt from the seller.
The Real Property Tax will help determine if the seller has properly paid his/her property tax. Furthermore, this will aid you in acquiring a Tax Clearance from the City / Municipal Treasurer’s Office. Please make sure to inform the seller that you will be getting a Tax Clearance.
2. (If applicable) Go to subdivision administration office and verify with the building or subdivision manager if the name of the person written in the Title given to you is the same in their record as the owner of the specific property.
The name in the Title should match the name in their record, else, that would be a red flag.
3. Go to the Land Registration Authority or Registry of Deeds and request for a Certified True Copy of the Title. They will ask for the details of the Title, so your photocopy/digital copy will come in handy. The name, number and other details in the photocopy/digital copy of the Title given to you should match the Certified True Copy that the Registry would provide, or else, another red flag!
4. Go to the Assessor’s Office and request for a Certified True Copy of the Tax Declaration.
5. Go to the City / Municipal Treasurer’s Office and request for a Tax Clearance. They would require a copy of the Updated Real Property Tax Official Receipt.
In most cases, the Tax Clearance should be provided by the seller.
